“Not everything that counts can be counted, and not everything that can be counted counts.” Einstein
Numbers are pouring in from company earnings reports. It’s a sea of red. Billions of dollars of revenue and hence, profitability, have dissipated. The reason an investor risks her hard earned capital into a publicly traded company is the belief that the company will sell more widgets (revenue) which will produce more profits (earnings) which will, in turn, increase the value of the company, which, in turn, will increase the investor’s portfolio value.
And yet, here we are today. An unseen enemy has wreaked havoc on the human race and our way of life. Our way of life revolves around jobs (that are now eliminated) and spending money (of which we have less (or none)). This all filters through to the bottom line of really great company’s balance sheets, and hence, a sea of red.
What shall an investor do? Shall they run for the hills? Build a bunker and fill it with dry canned food in preparation for Armageddon? Shall he abandon a well crafted financial plan, sell everything and hunker down in Gold or Cash?
I say no. As Einstein reports, “…not everything that can be counted counts.” While it is easy to count the $9.2 Billion dollar loss from our local publicly traded company, what isn’t so easy to count is the vitality of the human spirit. Healthcare professionals are rising up to care of the sick, teachers are putting in extra time and effort to education our kids on a different platform, food kitchens are working overtime to provide sustenance to the hungry, donations to non-profits are ramping up, truckers are delivering en masse to keep our supply chains intact, families are gathering around the table for dinner instead of rushing off to the next sporting practice, churches are providing prayer and care for affected community members…the list goes on and on.
I say stick with your strategy. America isn’t going out of business. The sea of red is explainable and temporary. America will reopen. Jobs will come back. Investors will be rewarded.
This too shall pass…